The start of trading earlier in the week also saw gold extend higher gains by touching the $ 2,000 per ounce price level amid growing demand for safe-havens.
The protracted war in Ukraine has sparked new concerns that the impact of sanctions on Russia will hurt global economic growth and increase inflation in the wake of the increasingly unstoppable surge in world commodity prices.
Western sanctions on Russia are reportedly entering a new cycle, after U.S. Secretary of State Antony Blinken said Sunday that Washington and its allies are considering banning imports of oil and natural gas from Russia.
This will not only affect global fuel supply but will also have an impact on Europe which is dependent on Russian imported products.
Disruptions in energy supplies, metals and grains will add to global price pressures to continue to rise. Subsequently, the yellow metal gold gained demand as a hedge to inflation by investors.
In the Asian session, the precious metal traded strongly at an 18 -month high around $ 1,990 an ounce, down slightly from the $ 2,000 level reached at the beginning of the session. Gold futures were positive at $ 1,994 an ounce.
If this pressure continues, then it is not impossible that the yellow metal will break an all -time high ever reached before in September 2020, which is at $ 2,075 per ounce.
